Abstract <p>Standalone Photovoltaic systems (PV) with battery storage are considered to be the economical and environmentally beneficial option as an alternative to conventional electricity. In this research, detailed technical, and economic comparison of PV systems with different batteries have been considered. Lead Acid Batteries, and Lithium-ion batteries are considered as an energy storage medium. In technical analysis, the capacity requirement for both cases have been examined by considering the daily energy demand for a residential building in Karachi, Pakistan. The technical analysis also includes the battery capacity and mass requirement. Further, the energy payback has been thoroughly studied to explore the overall impact of the system on the environment. The PV system with Lead Acid Batteries achieves an energy payback of 5 years and save around 50 tons of CO₂ production over the lifespan of 20 years. On the other hand, PV system with Lithium-ion significantly longer energy payback of 17.5 years and just save around 10 tons of CO₂ production. To assess the performance of both systems in real time scenario, simulation through PVsyst has been conducted. The economic aspects are also compared by determining the Net Present Value (NPV), Life Cycle Cost (LCC), Levelized Cost of Electricity (LCOE), Life time Benefit (LTB), and simple payback and from overall analysis, PV with Lead Acid Batteries, with LCOE of $0.041/kWh was proved to be more economically beneficial as the other one using Lithium-ion batteries, $0.07/kWh as energy storage.</p>